Question

According to the law of ________, the quantity of Indian rupees demanded by U.S. consumers will ________ when the price of Indian rupees in terms of U.S. dollars falls.

Answer 1

demand

rise

Step-by-step explanation:

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

If the price of Indian rupees in terms of U.S. dollars falls, it means that the US dollar has appreciated against the rupees

it becomes cheaper to buy the rupees.

As a result, the quantity demanded of rupees would increase